www.business-review.eu Business Review | August 2021
18 ENTREPRENEURSHIP
Enhancing links between Romania’s foreign investment and startup funding The pandemic caused a drop in foreign direct investment (FDI) in Romania in 2020, while a similar pattern was recorded in the amount of funding attracted by startups. While an increasing FDI volume could help local startups gain more visibility in the eyes of international investors, innovative businesses that are scaling up could generate a snowball effect of growing funding rounds. By Ovidiu Posirca
European B2B startups produce more output relative to their funding levels
T
he health crisis triggered a dramatic 60 percent decline in FDIs last year, to EUR 1.92 billion, according to data
the fresh flows of foreign investment. Growth is back on with GDP set to expand by 7.4 percent this year compared to 2020,
billion in the first five months of this year, compared to EUR 758 million in the same period of last year. “FDIs in local startups and technology
from the National Bank of Romania. How-
which will help Romania fully cover last
ever, the swift economic recovery of the first
year’s economic contraction. This is already
companies could play a big role towards the
half of the year has led to improvements in
evident for FDIs, which climbed to EUR 2.4
growth of the local economy, especially since
